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The Governors budget includes $21.7 billion in General Fund support for higher education in 2024‑25an increase of $226 million (1.1 percent) from 2023‑24. Nearly all of the new discretionary spending is for the California Community Colleges (CCC).
With the adoption of Proposition 98 (1988) and Proposition 111 (1990), a minimum funding level from State and local property taxes was provided to K-14 public schools. California schools today receive the large majority of their funding from the State, primarily from income and sales tax revenues.
THE REASON: California is spending less on education because of policy choices it has made. The state directs fewer resources to education than do other states, and its chosen tax sources are volatile, making education funding vulnerable during economic downturns.
Proposition 98 The K12 portion of Prop 98 funding represents K12 per-pupil funding of $13,976. The per-pupil funding level is a $3,322 increase over the 202021 Budget Act level, and a $1,976 increase over the per-pupil funding level the Governor projected in January 2020, prior to the COVID-19 pandemic.
2 In 2010-11, local sources primarily local property tax dollars accounted for less than one-third (29.9 percent) of schools revenues, and federal monies provided more than one out of eight school dollars (13.5 percent). Just 1.5 percent of schools dollars came from state lottery revenue.

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The normalization comes in the form of ensuring available resources continue to support the states ambitious program of social services, including investments in higher education. The proposed state budget comes in at $291.5 billion, a 6% reduction from the 2023-2024 state budget.
Proposition 98 funding for K-12 schools and community colleges is estimated to be $109.1 billion in 2024-25 and per-pupil funding totals $23,519 per pupil when accounting for all funding sources. MENTAL HEALTH REFORM. California has advanced a major transformation of the states behavioral health services system.
The state provides the majority of K12 funding. After docHubing a 30-year low (51%) in 202021 with the influx of federal pandemic aid, the state share of funding has been above 62% for the past two years, slightly above historical levels. Between 201718 and 202223, state K12 funding increased more than 40%.

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